You must generally follow community property laws when filing a tax return if you are married and live in a community property state. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Generally, community property laws require you to allocate community income and expenses equally between both spouses. However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability.

Married persons who filed separate returns in community property states have two ways to get relief.

Relief from separate return liability for community income. You are not responsible for reporting an item of community income if all the following conditions exist.

• You filed a separate return for the tax year.
• You did not include an item of community income in gross income on your separate return.
• You establish that you did not know of, and had no reason to know of, that community income.
• Under all facts and circumstances, it would not be fair to include the item of community income in your gross income.

Requesting relief. You request relief from separate return liability for community income by filing Form 8857, as discussed earlier. Write "Innocent Spouse Relief Under IRC 66(c)" across the top of Form 8857. Fill in the name and address area and Parts I and IV. Leave Parts II and III blank. Attach a statement to the form explaining why you believe you qualify for relief. Mail the form to the address listed in the Form 8857 instructions.

Equitable relief. If you do not qualify for the relief described above and are now liable for an underpayment or understatement of tax you believe should be paid only by your spouse (or former spouse), you may request equitable relief (discussed later).

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